Egypt shakes up Cabinet, appoints 10 new ministers

ASSOCIATED PRESS

January 7, 2013 12:01 AM

In this image released by the Egyptian Presidency, President Mohammed Morsi, center, meets with his cabinet including 10 new ministers after their swearing in at the presidential palace in Cairo, Egypt, Sunday Jan. 6, 2013. Egypt's government swore in 10 new ministers on Sunday in a Cabinet shake-up aimed at improving the government's handling of the country's struggling economy as foreign reserves levels slid closer to $15 billion, just enough to cover three months' worth of imports. (AP Photo/Egyptian Presidency)Egyptian Presidency

ASSOCIATED PRESS

January 7, 2013 12:01 AM

CAIRO -- Egypt swore in 10 new ministers Sunday in a Cabinet shake-up aimed at improving the government's handling of the country's ailing economy ahead of talks this week with the International Monetary Fund over a badly needed $4.8 billion loan.

The reshuffle, which President Mohammed Morsi had promised in response to public anger over Egypt's economic malaise, affected two key ministries, the interior and finance. It also solidified Islamist control of the government, putting three portfolios in the hands of members of the president's Muslim Brotherhood.

The dire state of Egypt's economy was punctuated Sunday by new central bank figures that put December's foreign currency reserves at $15.01 billion, down $26 million from a month earlier. The reserves have dropped by more than half since the uprising that ousted longtime ruler Hosni Mubarak in February 2011.

The central bank said in December that current reserve levels represent a "critical minimum."

Morsi met with the new ministers after their swearing-in ceremony at the presidential palace in Cairo where they discussed ways to revive tourism and attract foreign investors, a presidential official said.

Prime Minister Hesham Kandil, meanwhile, said he stressed in his first meeting with the new ministers the need for immediate action to stabilize the economy.

At the heart of those efforts lies the $4.8 billion loan that Egypt has requested from the IMF. Cairo says the funds are needed to bolster confidence in the country's economy and attract foreign investors.